Houston Dome Project

Posted by dreamboy_shani on March 6, 2010

Black Dragon Resource Companies has acquired a 6.25% working interest in the Humble Salt Dome EOR Project located near Houston, TX. This project utilizes a patented EOR chemical via steam injection to bolster production after initial revenues begin to decrease. Surface operations have already commenced and the initial well should be drilled in the very near future, stated Mr. Smith.

The plan for the project is to drill a five well pattern, each of which are producers initially, and once production slows, a centrally located well will be converted to an injection well, optimizing recovery percentages for the remaining four wells. If this initial five well pattern is successful, two more patterns may possibly be drilled in this same manner. Dragon is working to acquire additional interest in this project as it can.

Mr. Smith went on to state that the recently drilled Paluxy well, in which Dragon acquired a small overriding royalty interest, has flushed in around 15 barrels per day. Also, Dragon has contracted a company to complete the two recently drilled gas wells on the 640 acre lease, via air drilling. These gas wells must be completed in this manner to minimize the risk of excess salt water disposal costs that can easily remove profitability from this type of well.